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Molson Inc., Canada's oldest and biggest brewery, said on March 7 it is on target to reach operating growth of 14.5% for fiscal 2003, and forecast it will cut costs by C$125 million ($85.6 million) over the next three years, according to Reuters. "We feel really comfortable about the 14.5% target," Daniel J. O'Neill, president and chief executive, said during an annual call with financial analysts. The company brews such beers as Molson Canadian, Molson Export, Molson Dry, Rickard's, Kaiser and Bavaria.

Molson said it cut costs by C$150 million between fiscal 2001 and 2003, C$50 million more than expected, and planned to cut costs by C$125 million between fiscal 2004 and 2006. Montreal-based Molson, which acquired Brazilian brewer Kaiser in March 2002, said it had modernized brewery operations across the company and cut distribution and production costs.

O'Neill said the firm was looking at export opportunities for Molson beers in Mexico and other markets and said he wanted the company to become a significant player in the United States. In Canada, the group aims at increasing market share by 0.5 percentage points to 44.4% in fiscal 2004.

Molson's main competitors in Canada are Labatt, Sleeman and local microbreweries.


10 March, 2003